DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,340 March 5,440 February 8,480 April 4,230 Each unit requires 3 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory was 6,204 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.
DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,340 March 5,440 February 8,480 April 4,230 Each unit requires 3 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory was 6,204 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Thank you.
Transcribed Image Text:DEWITT INDUSTRIES
Direct Materials Purchases Budget
January
February
March
Transcribed Image Text:View Policies
Current Attempt in Progress
DeWitt Industries has adopted the following production budget for the first 4 months of 2020.
Month
Units
Month
Units
January
10,340
March
5,440
February
8,480
April
4,230
Each unit requires 3 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory
was 6,204 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's
production requirements.
Prepare a direct materials purchases budget by month for the first quarter.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education